Loading...
HomeMy WebLinkAboutEDCO Disposal Corporation - Rate Adjustment - Increase - 2001RESOLUTION NO. 2001- 88 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A TRASH SERVICE RATE CHANGE FOR EDCO DISPOSAL CORPORATION WHEREAS, the last refuse service rate change for Edco Disposal Corporation, the City's contract refuse hauler, was in June 1997; and WHEREAS, the rate for waste disposal is estimated to increase from $32.00 per ton to $32.87 per ton„ effective July 1, 2001; and WHEREAS, a public hearing was held to consider the refuse service rate change at the regularly scheduled City Council meeting of June 5, 2001, notice of which hearing was published according to law in a newspaper of general circulation in the City. At said hearing, the City Council considered oral and written evidence presented by the City Council, staff, and members of the public. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the proposed refuse service rate schedule, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, is hereby approved, effective July 1, 2001. Said document is filed in the office of the City Clerk. PASSED and ADOPTED this 12'h day of June, 2001. lite e,/(iZ George n. Waters, Mayor ATTEST: Michael R. Dalla, ity Clerk APPROVED AS TO FORM: ' GeorgeH. Eiser, III City Attorney RUBBISH AND GARBAGE 1. RESIDENTIAL. Per month residential single family properties For the second and for each additional residential unit In multiple dwellings which do not exceed four units Resolution 2001-88 NATIONAL CITY RATE SCHEDULE JULY 1, 2001 CURRENT PROPOSED MONTHLY MONTHLY RATE RATE $13.95 $14.83 $11.00 $11.69 2. TRALLER PARRS AND MOTHS One time por week. per unit. per month $9.67 $10.26 3. APARTMENT HOUSES One time per wear. per unit. per month $9.82 $10.42 4. SENIOR CITIZEN RESIDENTIAL 'Per month - $11.16 $11.86 5. SILVER BAG SERVICE Per month $1.85 $1.97 6. COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS Up to (2) 40 gallon containers Or (1) 90 gallon automated cart One time per wear, per month $15.99 $16.96 Up to (4) 40 gallon containers Or (2) 90 gallon automated cart One time per week, per month $29.76 $31.57 Up to (6) 40 gallon containers Or (3) 90 gallon automated cart One time per week, per month $38.25 340.57 Up to (8) 40 gallon containers Or (4) 90 gallon automated cart .One time per week. por month $47.28 $50.15 Up to (10) 40 gallon containers Or (5) 90 gallon automated cart One time per week. per month $61.75 $ 65.50 Additional or unusual accumulation of rubbish (per cubic yard) $15.99 $16.96 Exhibit "A" Page 1 Resolution 2001-88 NATIONAL CITY RATE SCHEDULE JULY 1, 2001 BOX TYPE REFUSE SERVICE COLLECTION NUMBER YARDS FREQUENCY OF DIM PER MONTH CURRENT PROPOSED MONTHLY MONTHLY RATE RATE 1 1 13 $84.54 $89.67 2 1 26 $142.71 $151.37 3 1 39 $200.88 $213.07 4 1 52 $ 260.76 $ 276.58 5 1 65 $320.64 $340.10 6 1 78 $380.52 $403.61 7 1 91 $440.40 $467.12 .. 1 2 26 $144.42 $153.18 2 2 52 $259.05 $274.77 3 2 78 $373.68 4396.36 4 2 104 $486.59 $516.12 5 2 130 $599.51 $635.89 6 2 156 $712.43 $755.66 7 2 182 $825.34 $875.42 1 • 3 39 $204.30 $216.70 2 3 78 $371.97 $394.54 3 3 117 $539.63 $572.38 4 3 156 $705.58 4748.40 5 3 195 $871.54 $924.43 6 3 234 $1,037.49 $1,100.45 7 3 273 $1,203.44 41,276.47 1 4 52 8264.18 $280.21 2 4 104 $484.88 $514.30 3 4 156 • 4705.58 $748.40 4 4 208 $924.57 $980.67 5 4 260 $1,143.56 $1.212.95 6 4 312 $1,362.55 $1,445.23 7 4 364 $1.581.54 $1,677.51 1 5 65 $324.06 $343.72 2 5 130 $597.80 $634.08 3 5 195 $871.54 $924.43 4 5 260 $1,136.72 81,205.70 5 5 325 $1,401190 $1,486.97 6 5 390 $1.667.08 $1,768.24 7 5 455 $1,932.27 ' $2,049.52 1 6 78 $383.94 4407.24. 2 6 156 $710.72 $753.85 3 6 234 $1,037.49 $1,100.45 4 6 312 $1,354.00 $1.436.16 5 6 390 51,670.51 41,771.83 6 6 468 $1,967.01 42,107.58 7 6 546 42,303.52 $2,443.30 Exhibit "A" Page 2 Passed and adopted by the Council of the City of National City, California, on June 12, 2001, by the following vote, to -wit: Ayes: Councilmembers Beauchamp, Inzunza, Morrison, Soto, Waters. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: GEORGE H. WATERS Mayor of the City of National City, California City rk of the City f National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2001-88 of the City of National City, California, passed and adopted by the Council of said City on June 12, 2001. City Clerk of the City of National City, California By: Deputy CDISPOSAL. CORPORATION 6670 Federal Boulevard, Lemon Grove, California 91945 (619) 287-7555 Fax: (619) 287-5242 May 7, 2001 City of National City 1243 National Avenue National City, California 92050 Honorable Mayor and Members of the City Council: The Refuse Collection and Recycling Agreement between the City of National City and EDCO Disposal Corporation provides for certain periodic rate adjustments. The contract allows for a pass through of changes in the disposal site fee and annual adjustments by the amount of the local consumer price index. As a member of the Regional Solid Waste A (RSWA), National City has benefited from two years without an increase in the tipping fee. RSWA staff has approved a 2.7% increase in the tipping fee to $32.87 effective July 1, 2001. Last year EDCO deferred a cost of living increase of 3.4% and we are requesting that adjustment be made effective July 1, 2001. Also, EDCO is again pleased to defer an increase in rates related to cost of living increases in operating expenses for this year. Consistent with last year's plans the Trash Enterprise Fund contribution will be the maintained for the coming year. EDCO continues to offer a 20% discount for senior citizens in National City. As in prior years, EDCO's requests for rate increases have been subjected to independent review by the auditing firm of Deloitte & Touche. Their report supports our rate proposal. Please approve the attached rate schedule to be effective July 1, 2001. As always, thank you for your consideration. Respectfully, EDCO Disposal Corporation Edward Burr President www.edco-corp.com A WASTE COLLECTION AND RECYCLING COMPANY Printed on Recycled Paper Deloitte & Touche LLP Suite 1900 701'B"Street San Diego, California 92101-8198 Tel: (619) 232-6500 Fax: (619) 237-1755 www.us.deloitte.com Deloitte &Touche INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES Mr. Jeffrey L. Servatius Public Works Department City of National City 1243 National City Boulevard National City, California 91950-4301 We have performed the procedures enumerated in Attachment A, which were agreed to by the City of National City and EDCO Disposal Corporation ("EDCO") (collectively, "the Specified Parties"), solely to assist you and EDCO with respect to evaluating components of the fiscal 2002 refuse rate for the City of National City. This engagement to apply agreed -upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the Specified Parties. Consequently, we make no representation regarding the sufficiency of the procedures described in Attachment A either for the purpose for which this report has been requested or for any other purpose. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report will not be used by, or circulated, quoted, disclosed, or distributed to, nor will reference to such report be made to, anyone who is not a member of the Specified Parties without the express written consent of Deloitte & Touche LLP ("D&T"). The parties hereby acknowledge that the report is intended solely for the information and use of the Specified Parties and is not intended to be used by anyone other than the Specified Parties. Not withstanding the foregoing, the City of National City may disclose such report to the extent required by any regulatory authority having jurisdiction over the City of National City, in which case the City of National City will cooperate with D&T in seeking appropriate protection for the disclosure and use of, and reference to, the report. U.4, April 20, 2001 Deloitte Touche Tohmatsu Pacific Southwest: Carlsbad Costa Mesa Las Vegas Los Angeles Phoenix Reno Tucson ATTACHMENT A The procedures we performed, which relate primarily to your fiscal 2002 residential refuse rate, are summarized as follows: 1. We read EDCO's internally prepared financial statements for the eight months ended January 31, 2001, and the audited financial statements for the year ended May 31, 2000. We inquired of Dan Gallaher (Controller for EDCO), as to any changes in accounting policies and methods of application which might affect the fiscal 2002 refuse rate for National City. No changes which might affect the fiscal 2002 refuse rate for National City were identified. 2. We agreed the fiscal 2001 refuse rate from EDCO's prior year's calculation to the refuse rate used in EDCO's fiscal 2002 refuse rate calculation proposal provided on March 30, 2001. The refuse rate in the March 30, 2001 proposal was agreed to the refuse rate presented in the final proposal dated April 24, 2001. 3. We obtained information from the U. S. Depaituuent of Labor - Bureau of Labor Statistics and agreed such information to the amount used in the Consumer Price Index ("C.P.I.") adjustment in the fiscal 2002 refuse rate calculation provided in EDCO's proposal provided on March 30, 2001. We noted that EDCO elected to request an increase related to the CPI based on a recovery of prior year's deferred cost of living increase. 4. We proved the mathematical accuracy of franchise fees due to National City for the period from April 1, 2000 to March 31, 2001, to ascertain that they were calculated based on 8% of cash collected as reported in EDCO's underlying financial records. 5. We read franchise fee remittances made to National City by EDCO for the period from April 1, 2000 to March 31, 2001 to ascertain that they were made on a monthly basis and agreed remittances reported to remittances received by the City of National City without exception. 6. We agreed San Diego County estimated landfill tip fee of $32.00 per ton projected in the FY01-02 rate review process to the Agreement for Transfer and Disposal Services between Regional Solid Waste Association and EDCO Disposal Corporation. 7. We agreed actual tons of refuse collected to two haphazardly selected days in the period from July 1, 2000 to March 31, 2001 to EDCO's supporting landfill tickets. 8. We proved the mathematical accuracy of the difference between the actual annualized revenues from EDCO's sale of recyclables and EDCO's projected revenues from the sale of recyclables used in the fiscal 2001 refuse rate. 9. We agreed total tons of recyclable materials collected to underlying accounting records for two randomly selected months. From the underlying records provided by EDCO, we randomly selected five daily recyclable totals and agreed those totals to supporting work tickets. We compared actual recycling rates to three randomly selected recycling receipts. 10. We proved the mathematical accuracy of EDCO's proposed effect of franchise fees on the fiscal 2002 refuse rate in the proposal provided on March 30, 2001. -2- 11. We proved the mathematical accuracy of the percentage effect of the yard waste disposal fee change on the fiscal 2002 refuse rate contained in EDCO's proposal provided on March 30, 2001. 12. We agreed coverage levels of insurance in force to the insurance provider's certificate of insurance to ascertain that such coverage was in compliance with contractual requirements. -3- City of National City, California COUNCIL AGENDA STATEMENT **Refer to Item #11 .MEETING DATE JunP 19, 2001 AGENDA ITEM NO. 2 ITEM TITLE A Public Hearing to Consider a Rate Increase Request for EDCO Disposal Corporation PREPARED BY Burton Myers EXPLANATION See attached report. DEPARTMENT Public Works Environmental Review X N/A Financial Statement The burden of rate increase w paid to the City. n all recipients of the trash service. A Franchise Fee of 9% will be Account No. STAFF RECOMMENDATI Hold the hearing. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) EDCO letter dated May 7, 2001 Deloitte & Touche letter dated April 20, 2001 Resolution No. A-200 (9/80) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of National City will hold a public hearing after the hour of 6:00 p.m., Tuesday, June 12, 2001, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, to consider: A REQUEST FOR CHANGE IN TRASH SERVICE RATES FOR EDCO DISPOSAL CORPORATION. Anyone interested in this matter may appear at the above time and place and be heard. If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the undersigned, or to the City Council of the City of National City at, or prior to, the public hearing. DA 1 ED: May 29, 2001 ey Michael R. Dallal, CMC City Clerk of the City of National City, California ® Recycled Paper City of National City Department of Public Works 1243 National City Blvd., National City, CA 91950 (619) 336-4580 (619) 336-4380 Fax (619) 336-4397 May 25, 2001 To: Mike Dalla, City Clerk From: Burt Myers, Acting Public Works Director/City Engi Subject: Scheduling of City Council Public Hearing Please schedule a public hearing for the following item: "A Public Hearing to Consider a Rate Increase Request for EDCO Disposal Corporation" Attached for your use is a copy of the Resolution to hold the Public Hearing. If you have any questions, please call. BM/mla Recycled Paper RESOLUTION NO. 2001- 71 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY SCHEDULING A PUBLIC HEARING TO CONSIDER A REQUEST FOR CHANGE IN TRASH SERVICE RATES WHEREAS, it has been proposed that there be approved a change in trash service rates to be charged by EDCO Disposal Corporation; and WHEREAS, Section 66018 and 6062(a) of the California Government Code require a public hearing and 10 days' notice prior to the enactment of specified new or increased fees or charges. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the time for hearing any and all persons interested in the proposed change in trash service rates is hereby set for 6:00 p.m. on June 12, 2001, in the City Council Chambers in the Civic Center, 1243 National City Boulevard, National City, California. BE IT FURTHER RESOLVED that the City Clerk of the City of National City, California, is hereby directed to provide notice of the time and place of said hearing in accordanre with the law. PASSED and ADOPTED this 15th day of May, 2001. A6ei-cd-le," George H. aters, Mayor ATTEST: /r Michael R. Dalla, Cilty Clerk APPROVED AS TO FORM: /-4/3 gts4.- SC George H. Eiser, III City Attorney City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE May 15, 2l01 AGENDA ITEM NO. 1 ITEM TITLE Resolution Scheduling a Public Hearing to Consider a Rate Change Request for EDCO Disposal Corporation PREPARED BY Burton Myers EXPLANATION DEPARTMENT Public Works EDCO is proposing a rate increase for single family residence from $13.95 per month to $14.83 per month. Commercial/Industrial rates for a one time a week pick-up of a 3 cubic yard bin is proposed to increase from $84.76 per month to $89.67 per month, with other levels of service being increased accordingly. Multi -family assessed per unit recycling fee be increased from $0.54 to $0.81 per unit per month, and the price of Silver Bags be raised $0.12 to $1.97 per bag. The purpose of this Resolution is to schedule a Public Hearing for the June 12, 2001 City Council meeting at which time the requested change in the trash service rate would be heard. Environmental Review X N/A Financial Statement The burden of rate increase will fall on all re paid to the City, and the Refuse Enterprise $150,000 toward the overall costs. STAFF RECOMMENDATION Adopt Resolution setting Public Hearin pie un BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) L.. A-200 (9/80) s of th I offs to ash ervice. A Franchise Fee of 9% will be posi ion of the rate increase by contributing Account No. Resolution No. 2001-71 RESOLUTION NO. 2001 - 71 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY SCHEDULING A PUBLIC HEARING TO CONSIDER A REQUEST FOR CHANGE IN TRASH SERVICE RATES WHEREAS, it has been proposed that there be approved a change in trash service rates to be charged by EDCO Disposal Corporation; and WHEREAS, Section 66018 and 6062(a) of the California Government Code require a public hearing and 10 days' notice prior to the enactment of specified new or increased fees or charges. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the time for hearing any and all persons interested in the proposed change in trash service rates is hereby set for 6:00 p.m. on June 12, 2001, in the City Council Chambers in the Civic Center, 1243 National City Boulevard, National City, California. BE IT FURTHER RESOLVED that the City Clerk of the City of National City, California, is hereby directed to provide notice of the time and place of said hearing in accordance with the law. PASSED and ADOPTED this 15t day of May, 2001. George H. aters, Mayor ATTEST: w Michael R. Dalla, C Clerk APPROVED AS TO FORM: 7406 gem: SC George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on May 15, 2001, by the following vote, to -wit: Ayes: Councilmembers Beauchamp, Inzunza, Soto, Waters. Nays: None. Absent: Councilmember Morrison. Abstain: None. AUTHENTICATED BY: GEORGE H. WATERS Mayor of the City of National City, California lerk of the City o ation al City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2001-71 of the City of National City, California, passed and adopted by the Council of said City on May 15, 2001. City Clerk of the City of National City, California By: Deputy City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 June 20, 2001 Mr. Steve South Edco Disposal Corporation 711 "A" Avenue National City CA 91950 Dear uth, 27161/t, On June 12, 2001, Resolution No. 2001-88 was passed and adopted by the City Council of the City of National City, approving a trash service rate change for Edco Disposal Corporation. We are enclosing for your records a certified copy of the above Resolution. Michael R. Dalla, CMC City Clerk MRD/mla Enclosure cc: Public Works File No. C90-26 0 Recycled Paper City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE Jbme 19, 2001 *Refer to Item #2 11 AGENDA ITEM NO. / ITEM TITLE A Resolution to Approve a Rate Increase Request for EDCO Disposal Corporation PREPARED BY Burton Myers EXPLANATION See attached report. DEPARTMENT Public Works i Environmental Review X N/A Financial Statement The burden of rate increase will fall .n all recipients of the trash service. A Franchise Fee of 9% will be paid to the City. STAFF RECOMMENDATIO ,� Adopt attached Resolution. ♦1 4 BOARD / COMMISSION RECOMMENDATION N/A Account No. ATTACHMENTS ( Listed Below) Resolution INo. 2001-88 EDCO letter dated May 7, 2001 Deloitte & Touche letter dated April 20, 2001 A-200 (9/80) REFUSE RATE RECOMMENDATION FOR FY-02 Basis: The determination of the appropriate rates for trash service is based upon estimated quantities of various components (landfill and yard waste quantities, recyclables sold and consumer price index (CPI)) as related to the cost/price of such components. A rate review is performed annually. For the rate review, the actual performance for 9 months (July -March) is escalated to 12 months, and the actual total cost/price of budget items is determined, and is then compared to budgeted amounts. Overcollection/undercollection by EDCO occurs unless our estimates are exact. Overcollection/U ndercollection: For the FY-01, we used the anticipated rate of $32.00 per ton in the rate calculations. This rate was available to us because of a contract with the Regional Solid Waste Authority (RSWA). Due to higher than normal sellback rates and the increased tonnage from the Automated Single Stream Recycling, the amount collected by the curbside recycling program was approximately $48,000 over the projected amount. Yard waste tonnage costs resulted in a savings of $10,000 on our estimate. This $58,000 was used to help offset a higher than estimated trash tonnage hauled, which resulted in an undercollection of approximately $150,000. This amount will be factored into the rates for FY-02 in order to recover the costs and repay EDCO. FY-02 Rate Factors: We anticipate the Tip Fee Rate for FY-02 will increase to $32.87 per ton. We also anticipate the trash tonnage hauled to remain at the current higher amounts and the curbside recycle program (due to lower buyback) to return less than in FY-01. In addition to the $150,000 owed to EDCO for the undercollection, they deferred last year's 3.4% CPI increase which they were entitled. In an effort to ease the rates for FY-02, EDCO has offered to defer this year's CPI increase, but now collect last year's. Multi -family recycling has lagged behind the recycling being done by the single family and commercial sectors. Because of this, several years ago in an attempt to encourage multi -family to recycle and so that single family and commercial did not have to pay for multi -family, a $0.54 per unit recycling fee was assessed on them. This has proven to generate less than actual cost associated with the lower recycling participation. The difference has been a component of the overall rate structure and is proposed to be removed and the direct charge adjusted to $0.81. Consistent with prior year's direction, the Trash Enterprise Fund contribution will again be $150,000. In addition, the Franchise Fee will increase by 1% to a total of 9%. This is in accord with the current contract with EDCO which calls for an annual 1 % increase until we reach the maximum of a 10% Franchise Fee. EDCO Letter and Auditor Report: The "Rate Adjustment" from EDCO is attached. The figures upon which the rate is based are subject to review (specifically on agreed upon procedures) by an audit firm selected by the City and paid by the contractor. (Deloitte and Touche LLP has been selected in the past few years and their report is also attached.) Recommendations: • The contractor will receive the 3.4% CPI increase to which he is entitled. • Accept the contractor's offer to defer this year's CPI increase to which they are entitled by contract. • That the City Franchise Fee increase by 1% to 9%. The rate recommendation is to increase the single family residential from $13.95 per month to $14.83 per month. Commercial/Industrial for one time a week pick-up of a 3 cubic yard bin to increase from $84.76 per month to $89.67 per month, with other levels of service being increased similarly. Multi—family's assessed per unit recycling fee be increased from $0.54 to $0.81 per unit per month, and the price of Silver Bags be raised $0.12 to $1.97 per bag. Subscript It should be noted that if approved, the single family rate history will be as follows: FY-95 $16.65 FY-96 $14.85 FY-97 $14.36 FY-98 $13.95 FY-99 $13.95 FY-00 $13.95 FY-01 $13.95 Proposed FY-02 $14.83 Future: It should be noted that preliminary review of pertinent factors indicate a FY-03 rate increase for single family in the range of $0.70 to $1.00 per month, with corresponding increase in other EDCO services.